Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The cash conversion rate was lower than both the prior quarter and the year-ago period.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow rose sequentially but fell year over year. Capital expenditure was higher in both comparisons, resulting in free cash flow that improved from the prior quarter but declined from the same quarter last year, with the free cash flow margin narrowing versus both periods.
- Compared to the immediately preceding quarter, free cash flow and revenue were higher, but the free cash flow margin was lower. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$917.0M
Capital spending and related asset purchases.
FCF margin
8.2%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-10-27 | $40.2B | $4.2B | $818.0M | $3.4B | 8.5% |
| 2025-02-02 | $39.7B | $4.7B | $1.1B | $3.6B | 9.0% |
| 2025-05-04 | $39.9B | $4.3B | $806.0M | $3.5B | 8.8% |
| 2025-08-03 | $45.3B | $4.6B | $917.0M | $3.7B | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, contributing to a lower free cash flow margin despite higher revenue. This is the strongest observable driver of the free cash flow decline year over year.
Higher capital expenditure reduced free cash flow and margin relative to the year-ago period, even as revenue increased.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow rose sequentially but fell year over year. Capital expenditure was higher in both comparisons, resulting in free cash flow that improved from the prior quarter but declined from the same quarter last year, with the free cash flow margin narrowing versus both periods.
Compared to the immediately preceding quarter, free cash flow and revenue were higher, but the free cash flow margin was lower. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, while revenue was higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as higher spending has compressed free cash flow margin in both comparisons.